EGX 30 Continues To Rally, Nears 5175 Pts; Midday

Powered by the announcement of cancelling the taxes  on acquisitions, mergers and dividends in the Egyptian Exchange, the EGX has managed to post midday gains of around EGP 4 billion on Tuesday.

The capital market has amounted to EGP 357.675 billion, according to data compiled by Amwal Al Ghad English at 12:36 p.m. Cairo time (10:36 GMT) during Tuesday’s midday session.

The EGX indices were in green notes during the midday session.

Benchmark EGX30 climbed by 1.18% to 5172.97 p; while EGX20 hiked by 1.27% to 5944.58 p.

Meanwhile, the mid- and small-cap index, the EGX70 surged by 1.76% to 448.08 p.  Price index EGX100 advanced by 1.48% to 747.13 p.

During Tuesday’s midday session, the trading volume has reached 53.856 million securities worth EGP 150.435 million, exchanged through 8.935 transactions.

This was after trading in 138 listed securities; 6 declined, 105 advanced; while 27 keeping their previous levels.

Egyptians and Arabs’ buying transactions have backed EGX’s midday gains as they were net buyers seizing 65.68% and 8.48% respectively, of the total markets, with a net equity of EGP 2.405 million and EGP 4.003 million, excluding the deals.

Meanwhile, non-Arab foreigners’ were net sellers seizing 25.85% of the total markets, with a net equity of EGP 6.408 million excluding the deals.

Tax Cancelation:

On Monday, Dr. Abdullah Shehata, advisor of the Egyptian Finance Minister and head of economic committee at Freedom and Justice Party (FJP) announced that taxes on acquisitions, mergers and dividends in the Egyptian Exchange (EGX) will be cancelled.

During an interview with a state-TV talk show on Monday, Shehata said a single tax remains, which is the stamp tax that will be applied at 1/1000 for each of the seller and buyer.

The cancellation move will be effective once the law is endorsed by Shura Council (Egypt’s Upper House). Accordingly, the 10% tax on NSGB’s deal will not be collected.